New Zealand Tax Agency Asks Crypto Firms To Hand Over Customer Personal Data – Bitcoin News Settlement
New Zealand’s Inland Revenue Department (IRD) has asked crypto companies in the country to report their clients’ personal information, the value of cryptocurrency assets as well as the type of asset held.
According to a September 28 report from Radio New Zealand, the tax agency says it wants to improve its understanding of the digital asset sector “so that we can find the best way to help taxpayers meet their tax obligations.”
New Zealand companies may not have legal grounds to deny the request, according to the report. In the island nation, virtual currencies are treated as a form of property, just like in the United States. Tax is paid for each activity of sale, exchange, exchange or loan. Crypto mining and staking is also taxed.
The latest IRD decision has sparked criticism from industry players. Janine Grainger, CEO of New Zealand-based Easy Crypto, told Radio New Zealand that the requirement to share customer details was “heartbreaking.”
She noted how the tax administration’s decision was an attempt to shore up its coffers with a rapidly growing local crypto industry, but stressed that “privacy is really important to us.” Grainger is of the opinion:
While a lot of people might think, âI have nothing to hide so what do I care? The purpose of privacy is not to help people who have something to hide, it is to ensure that we have a just, open and free society.
Regulators around the world are working to tighten their control over the cryptocurrency industry. The U.S. Internal Revenue Service (IRS) has sent warning letters to crypto investors about whether they have correctly reported their transactions.
What do you think of the New Zealand tax agency trying to get personal information from crypto investors? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons